CO129-604-2 Crown Leases 23-2-1948 - 6-11-1948 — Page 36

5051/48

Code

No. 12

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

Ruped (3)+(4)

TO HONG KONG (Bir A. Opntham)

3ent 14th May, 1948. 17.15 hrs.

36

Your despatch No. 3 of the 23rd February.

Renewal terms for holders of certain Crown Loeses.

Parograph 4 or statement dealing with Crown rent ¿AVES HVo bases apeement which are prima facis contradictory. I assume, however, from paragraph 6 of your despatch that it is, in fact, intended to charge Grown rent at the conventional rate normally charged by Government for new leesca in the gawe district and not on the alternativo basis of the full and fair valus of the land, Indeed, it * is difficult to reconails the basis of full and feir valus for rental with the proposal in paragraph 5 for charging b prezium also based on current land values, since that would appear to be charging for the value of the land iteelf twice

OTUP.

2

I take it, therefore, that the operative proposal is to charge a rent in accordance with current practice at a conventional figure and require payment of a premium which will represent the balance of the undeveloped value of the land over and above that rembalo

36

AZ

This involves a complete withdrawal of any clair to a premium based on the developed value of the land, to

which it has previously been held that Goverment is

entitled, I am inclined to think that the concession sugiepted

in paragraphs 4 and 5 of Lord oyne's despatch of 17th March,

1941 end,

畿 in any case was aimeçasarrily gonerous to Tesokoldera,

sincs whatever is done in the gaso of these leesbo 10

bound to be a precadent when question of renewal of tae

99-year leases and 75-year renowal leases comes up, I feel that paragraph of Lord Moyne's despatch referred to under stated the importance of the issue. I should, therfore, be glad to know the reasons for the further Concession proposed to leaseholders and to kaow, if it is posaibla to make such sa assesgnent, how the terms now propoceû under which the premium will be based solely on the undeveloped value of the land will compare in practice with those proposcú in Lord Moyne's despatch under which in effect 50% of the total premium on the developed value vas to be remitted,

Concession offered in 1946 vas approved specifically on the basis that it would encourage quicker redevelopment of damaged properties. I do not think, therefore, that it should be rogarded aa a precedent for permanent concessions to all lemmeholdere und available information suggests that there is in any case no neod at present to offer any special additional incentives to building development in the Colony which present conditions make so exceptionally profitable,